Euro-Zone Data May Not Be as Good as They Look

1/30/2013 7:11AM

Dow Jones's Paul Hannon looks at the continued divergence in euro-zone economies despite the slight improvement so far this year. With the euro also rising, he questions the strength of a future recovery.

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... he ... uses ... so it does ... appear to be continuing ... but all ... is said to explain ... why didn't they know the that that awful ... why the rally in the euro ... could ... pose a problem ... Paul ... spends GDP contracted by two point eight percent in fourth-quarter Vaas debt ... the good news ... know the ... the thing about today should today is that the brownies ... it ... isn't as bad as it seems in the good news isn't as good as it seems of ... Spanish GDP was affected by the introduction of a sales tax in the fourth quarter with the Vinci's the ... last minute shifted their spending back to the third quarter ... see we have to the average those two quarters together a good picture of what's going on ... if you do that it did to look like the situation is getting much worse in so much worse in the first of ... all the students a long way from it getting better ... that's it ... for various auto pick ... up the so the jump blues Gemini ... with the confidence he is the scope of this that that amazingly good and you think well hold the second half ... Spain's constructed by that has been chosen to do so ... yet we had the euro zone wide confidence figures this morning and they attracted considerable attention I am ... and eight they looked promising and incompetence of across the euro zone as a whole was all but if he desegregation break it down ... that's almost a party due to the ... German news what we soul ... I see in the chief of the house so basically what you say Apple ... there is no improvement on the divergence ... that the economy is in the US about economists generally appear ... to have some of the others without will look what a good economy and lots of losses but that the Dutch colonies where the jury's still out of sentiment in France ... Olsen Swinton is who he was ... was flat and or other places like Portugal for example were confidence fell again so ... it does suggest that if there is a recovery in euro zone you will be very heavily concentrated in ... the strongest economy Germany ok but what's in ... it that all this leave other pubs as well the love of public policy makers to mean making policy pull ... economies in the US that those messages remains of baseball ... yet I mean the good the game doesn't change much because he's so mean this is being true for policy makers so for that in the house three years now and maybe even for longer ... I don't know what to do but in the house for an independent of North Dakota to hope that ... the longer term repair the southern economies will eventually ... get them to a point where de theyre and in the pickup ok ... what the good side so this is that the proof will use us to the fore in costs for the big and that the country's last fall and the sequence that for them ... is that all good news ... for the same time this is ... a real rally in the euro without oval won thirty five against the dollar the highest level since the one above of twenty eleven so they can aam ... hold on that's a strong currency is that the US alliance in some of those countries and yet so very unfortunate development ... it ... can be ... good for anyone to frankly ... when you already see signs that may be affecting the manufacturing sector in particular across the euro zone ... to go back to this ... survey I spoke about earlier in the decommission survey ... that found the culprit in an industry picked up but ... that they were reporting already a fall in export orders ... and trying to bring in a ... little note as part of the survey course in the question they ask which is ... you know how competitive the field on world markets ... they found that the proportion of companies in the euro zone you feel compelled to this decline since October ... and is a lot lower than it was in January two thousand and twelve so ... what does that mean they should know right there saying this a day-to-day basis are are they getting orders in predicting what they can go up there and ... and when the contract against international competition ... they're feeding Eskom for them what's changed in the last six months ... the currency run ... outside house to be the main bridge on me ... the blessing that would use this this improvement it is but economies are seeing continued openness has stifled the start of the ... film ... gets thoughtful destroying gold but if you know it it's not going to be very strong ... you can see the ... if you don't have a domestic demand ... you have to depend on exports ... well we seen from the Spanish number today is the domestic demand domestically just isn't there in large parts of the euro zone ... without ... you know a good chance of competing in international markets can be very difficult for them to grow the way ... out of its all across India ...